Changes to UK TV advertising place sector on more sustainable footing

  • Sectors : Gaming
  • Companies : GVC Holdings | Paddy Power Betfair | William Hill plc | GAN


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
GAN NEUTRAL 05/11/14 Under Review 12/02/14 51.5p
William Hill plc NEUTRAL 13/02/14 Outperform 16/02/11 163p
Paddy Power Betfair NEUTRAL 29/08/17 Outperform 18/09/15 6765p
GVC Holdings NEUTRAL 13/12/17 N/A N/A 723p


Given the recent direction of travel, we are not surprised by reports that UK gambling companies will agree to stop advertising during live sports events. Such a development may raise further concerns about the regulatory environment in the sector’s largest geography. However, it is a necessary development, in our view, and nudges the sector towards a more sustainable footing. We also suspect the return on TV advertising is more modest than other channels. Should the agreement be confirmed, we do not expect to make material changes to our near-term estimates.

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Dec 6 2018, 09:50 GMT